21 May 2024 Green Credit Program (GCP)
THIS ARTICLE COVERS ‘DAILY CURRENT AFFAIRS’ AND THE TOPIC DETAILS OF ”Green Credit Program (GCP)”. THIS TOPIC IS RELEVANT IN THE “Environment” SECTION OF THE UPSC CSE EXAM.
Why in the News?
The Centre government has approved 12 greening projects under the Green Credit Program (GCP), which was notified last year as a market-based mechanism designed to incentivise voluntary environmental actions across diverse sectors. The officials said estimates of 24 plans submitted by different state forest departments are under consideration. The government has been pushing the public-sector undertakings (PSUs) to take the lead in registering for the programme, especially in mining-heavy states.
About Green Credit Programme:
- The Indian PM launched the Green Credit Initiative on the sidelines of COP 28 (held in 2023 at Expo City, Dubai, United Arab Emirates). This initiative is a part of the government’s Lifestyle for Environment (LiFE) movement. The Prime Minister presented the LiFE Concept at COP26 in Glasgow in 2021, aiming to foster a global movement focused on conscious and purposeful consumption to safeguard and sustain the environment.
- The Green Credit Programme (GCP), initiated by the Union Environment Ministry, promotes investments in reforestation activities on degraded forest lands to produce ‘green credits.’
- The GCP has launched a market-oriented strategy to motivate participation in eight specific environmental initiatives. Its primary goal is to create a system that allows participants to receive rewards through ‘Green Credits’ for their involvement. This initiative promotes voluntary environmental efforts among individuals, organisations, and businesses.
- The objective of the GCP is to encourage sustainable practices and conserve the environment. It highlights the importance of sustainability, minimising waste, and enhancing the quality of our natural surroundings.
- Some objectives are to improve India’s forest and tree cover, build an inventory of degraded land suitable for plantation under the control and management of Forest Departments, and encourage the participation of individuals and entities in pro-planet actions by rewarding Green Credits.
- The GCP is overseen by the Indian Council of Forestry Research and Education (ICFRE). It is planned to be implemented in stages, starting with efforts on water management and tree planting in the initial phase. Subsequent phases will cover activities such as:
- Planting Trees: Efforts to expand green spaces and fight deforestation.
- Managing Water: Strategies to efficiently conserve and use water resources.
- Eco-friendly Farming: Encouraging agricultural methods that are both productive and sustainable.
- Managing Waste: Developing systems to minimise pollution from waste.
- Reducing Air Pollution: Measures to reduce air pollutants and enhance air quality.
- Preserving Mangroves: Activities focused on protecting and rehabilitating mangrove habitats for environmental stability.
What is Green Cresdit?
Green credit refers to financial incentives or credits provided to encourage and support environmentally sustainable practices and projects. These credits are part of a broader strategy to promote environmental conservation, reduce carbon emissions, and foster sustainable development. Green credits can take various forms, including lower interest rates on loans for green projects, grants, tax incentives, or tradable credits that can be bought and sold in environmental markets.
Green credit is similar to carbon credits in that it neutralises emissions. This approach enables both individuals and corporations to undertake tree planting or reforestation efforts on degraded land. These actions allow businesses to offset activities leading to deforestation or the conversion of forested areas to non-forested uses.
The Indian Council of Forestry Research and Education manages the issuance of green credits for these activities. Qualified activities for earning these credits span tree planting, water conservation, promoting sustainable farming practices, and efforts to reduce air pollution. The scheme encourages tree planting by awarding a green credit for each tree planted, fostering a tangible incentive to contribute to reforestation.
Under state governments, state forest departments are responsible for selecting degraded lands, such as open forests and wastelands, for tree planting. These selected lands should be free of legal claims and cover an area of at least five hectares.
Implementing and scaling green crediting systems face several challenges that need to be addressed to ensure their effectiveness and sustainability. These challenges span regulatory, financial, technical, and social dimensions. Here are some of the primary challenges:
- Verification Costs: Ensuring projects meet green standards can be expensive and time-consuming.
- Market Demand: Sufficient demand for green credits or bonds is necessary to drive the market and make the programmes successful.
- Regulatory Barriers: Inconsistent regulations across regions can hinder the development of a cohesive green credit market.
- Awareness and Education: Raising awareness and understanding of green credit mechanisms among businesses and investors is crucial for widespread adoption.
- Insufficient Demand: For green credits to effectively drive environmental projects, there must be ample interest and investment from businesses and investors. Without significant market demand, the economic sustainability of green credit initiatives can be jeopardised.
Way Forward:
Policy Support: Governments can create policies, including subsidies, tax incentives, and regulatory frameworks, to support the development and adoption of green credit programmes.
Public-Private Partnerships: Collaboration between public and private sectors to pool resources and expertise, enhancing the reach and effectiveness of green credit initiatives.
Education and Awareness: Raising awareness about the benefits of green credits and providing education on sustainable practices to encourage wider participation.
Innovation and Technology: Leveraging technological advancements to monitor, report, and improve the impact of green projects.
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Mains Practice Question:
Q. How does the Green Credit Programme contribute to environmental sustainability? Discuss the Green Credit Programme to encourage community involvement and awareness about India environmental issues.
Q. How does the Green Credit Program ensure equal access and opportunities for all socio-economic groups, particularly marginalised and low-income communities, to participate and benefit?
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